GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

The Top Five Guru-Held Mid-Cap Stocks of Q2

September 04, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers
Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see mid-cap companies which are held by the most gurus. The following five mid-capped companies are held by the largest number of gurus during the past quarter.

Quest Diagnostics (DGX)

As of the close of the second quarter there were 19 guru owners of Quest Diagnostics. During the past quarter there were six gurus buying shares of DGX and there were twelve gurus making sells of their stake in the company. These gurus maintain a combined weighting of 5.76%.

Top three guru shareholders of Quest Diagnostics:

1. Chris Davis (Trades, Portfolio): 4,672,681 shares, representing 3.23% of the company’s shares outstanding and 0.82% of the fund’s total portfolio.

2. Brian Rogers (Trades, Portfolio): 3,000,000 shares, representing 2.08% of the company’s shares outstanding and 0.62% of his total portfolio

3. HOTCHKIS & WILEY: 2,523,400 shares, representing 1.75% of the company’s shares outstanding and 0.52% of his total portfolio.

Quest Diagnostics and its subsidiaries are the providers of diagnostic testing, information and services, providing insights that enable patients and physicians to make better healthcare decisions.

Quest Diagnostics’ historical revenue and net income:

1409849879551.png

The analysis on Quest reports that the company has shown predictable revenue and earnings growth, its operating margin is expanding and its price is near a 10-year high.

The Peter Lynch Chart suggests that the company is currently undervalued:

1409850103223.png

Quest Diagnostics has a market cap of $9.14 billion. Its shares were trading at around $63.28 with a P/E ratio of 12.20, a P/S ratio of 1.30 and a P/B ratio of 2.10. The company had an annual average earnings growth of 8.50% over the past ten years.

GuruFocus rated Quest Diagnostics the business predictability rank of 4-star.

Laboratory Corp of America Holdings (LH)

As of the close of the second quarter there were 18 guru owners of Laboratory Corp of America. During the past quarter there were eight gurus buying shares of LH and there were nine gurus making sells of their stake in the company. These gurus maintain a combined weighting of 12.1%.

Top three guru shareholders of Laboratory Corp of America:

1. Chris Davis (Trades, Portfolio): 6,747,256 shares, representing 7.96% of the company’s shares outstanding and 2.1% of the fund’s total portfolio.

2. Richard Pzena (Trades, Portfolio): 1,654,529 shares, representing 1.95% of the company’s shares outstanding and 0.94% of his total portfolio

3. John Rogers (Trades, Portfolio): 1,087,739 shares, representing 1.28% of the company’s shares outstanding and 1.4% of his total portfolio.

Through its national network of laboratories, Laboratory Corp of America offers a broad range of clinical laboratory tests that are used by the medical profession in routine testing, patient diagnosis, and in the monitoring and treatment of disease. In addition, the company has developed testing operations, such as oncology testing, HIV genotyping and phenotyping, diagnostic genetics and clinical trials.

Laboratory Corp of America’s historical revenue and net income:

1409850527623.png

The analysis on Laboratory Corp of America Holdings reports that the company has shown predictable revenue and earnings growth, its price is near a 10-year high, and over the past three years the company has issued $767.4 million of debt.

The Peter Lynch Chart suggests that the company is currently overvalued:

1409850582279.png

Laboratory Corp of America Holdings has a market cap of $9.13 billion. Its shares are currently trading at around $107.59 with a P/E ratio of 18.00, a P/S ratio of 1.60, and a P/B ratio of 3.40. The company had an annual average earnings growth of 11.30% over the past ten years.

GuruFocus rated Laboratory the business predictability rank of 4-star.

International Game Technology (IGT)

As of the close of the second quarter there were 18 guru owners of International Game Technology. During the past quarter there were eleven gurus buying shares of IGT and there were seven gurus making sells of their stake in the company. These gurus maintain a combined weighting of 7.2%.

The top guru shareholders of International Game Technology:

  1. John Rogers (Trades, Portfolio): 12,662,857 shares, representing 5.13% of the company’s shares outstanding and 2.5% of his total portfolio.
  2. Chris Shumway (Trades, Portfolio): 2,265,784 shares, representing 0.92% of the company’s shares outstanding and 0.54% of the guru’s total portfolio.
  3. Mario Gabelli (Trades, Portfolio): 1,265,784 shares, representing 0.66% of the company’s shares outstandinga and 0.14% of his total assets managed.
International Game Technology is a global gaming company specializing in the design, manufacture, and marketing of electronic gaming equipment and systems products. The company has two revenue streams within each business segment gaming operations and product sales.

International Game Technology’s historical revenue and net income:

1409856495519.png

The analysis on IGT reports that the company’s revenue per share has been in decline over the past year.

The Peter Lynch Chart suggests that the company is currently overvalued:

1409856524421.png\

International Game Technology has a market cap of $4.17 billion. Its shares are currently trading at around $16.85 with a P/E ratio of 17.70 and a P/S ratio of 2.00. The dividend yield of IGT stocks is at 2.60%, and the company has seen an annual average earnings growth of 5.70% over the past five years.

Interpublic Group of Companies (IPG)

The fourth largest held mid-cap stock is Interpublic Group of Companies. As of the close of the second quarter there were 17 gurus with a position in the company with eight gurus making buys over the past quarter and seven gurus making sells. These gurus hold a combined weighting of 15.2%.

The largest guru shareholders of IPG as of the close of Q2:

  1. HOTCHKIS & WILEY: 17,274,468 shares, representing 4.08% of the company’s shares outstanding and 1.2% of the fund’s assets managed.
  2. Richard Pzena (Trades, Portfolio): 15,735,405 shares, representing 3.71% of the company’s shares outstanding and 1.7% of his total portfolio.
  3. John Rogers (Trades, Portfolio): 11,981,407 shares, representing 2.83% of the company’s shares outstanding and 2.9% of his total portfolio managed.
Interpublic Group of Companies is a global advertising and marketing services. The company has two reportable segments: Integrated Agency Network (IAN) and Constituency Management Group (CMG).

Interpublic Group of Companies’ historical revenue and net income:

1409857622343.png

The analysis on IPG reports that the company has issued $133.8 million of debt over the past three years, its dividend yield is near a 3-year low and its price is near a 10-year high. The analysis also notes that the company’s operating margin is expanding, which is generally a good sign.

The Peter Lynch Chart suggests that the company is currently overvalued:

1409857710547.png

Interpublic Group of Companies has a market cap of $8.3 billion. Its shares are currently trading at around $19.69 with a P/E ratio of 26.80 and a P/S ratio of 1.20. The dividend yield of IPG is at 1.80% and the company had an annual average earnings growth of 17.00% over the past ten years.

Staples (SPLS)

As of the close of the second quarter there were 17 guru owners of Staples. During the past quarter there were nine gurus buying shares of SPLS and there were seven gurus making sells of their stake in the company. These gurus maintain a combined weighting of 4.3%.

Top three guru shareholders of Staples:

1. Richard Pzena (Trades, Portfolio): 32,759,270 shares, representing 5.07% of the company’s shares outstanding and 2% of the fund’s total portfolio.

2. Brian Rogers (Trades, Portfolio): 14,000,000 shares, representing 2.17% of the company’s shares outstanding and 0.53% of his total portfolio

3. HOTCHKIS & WILEY: 7,357,500 shares, representing 1.14% of the company’s shares outstanding and 0.28% of his total portfolio.

Staples operates as an office products company. The company's three reportable segments are North American Delivery, North American Retail and International Operations.

Staples’ historical revenue and net income:

1409860126422.png

The analysis on Staples reports that the company’s revenue per share has been in decline over the past year, the company’s Piotroski F-Score is high, and its dividend yield is near a 10-year high. The analysis also notes that the company’s price, P/S ratio, and P/B ratio are all trading at near 10-year lows.

The Peter Lynch Chart suggests that the company is currently undervalued:

1409860192327.png

Staples has a market cap of $8.15 billion. Its shares are currently trading at around $12.65 with a P/E ratio of 15.40, a P/S ratio of 0.40 and a P/B ratio of 1.20. The dividend yield of Staples stock is currently at 3.70%.

You can check out other top held sectors of the market by using the Aggregated Screener here.

Try a free 7-day premium membership.


Rating: 5.0/5 (1 vote)

Voters:

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK